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On the Record with
DEAN BORGMAN, PRESIDENT, SIKORSKY
AIRCRAFT CORP.

When it comes to politics, Sikorsky knows how to play the game. Its 19-passenger S-92 Helibus might be ideal to ferry people from Taiwan to mainland China (an 80-mile cross-water jaunt), but the two countries remain at odds and direct links are not allowed.

Perhaps symbolizing the future, two of Sikorsky's six international partners on the S-92 are Jingdezhen Helicopter Group/CATIC of the People's Republic of China, and Aerospace Industrial Development Corporation (AIDC) in Taiwan. China builds the tail and AIDC the cockpit-the two parts of the aircraft furthest away from each other. But they are held firmly in place by the fuselage from Japan.

"We certainly don't want those parts to meet in the middle," quipped a Sikorsky spokesman.
Is there a lesson for Asian politicians from this partnership? "We're not even going to touch that one," he said

Asia-Pacific is playing a significant role in Sikorsky's next major project-the S-92, which president Dean Borgman believes could generate fully half of the company's revenues in the next few years.
"There's two ways that could happen, and I don't want to think of one of them," he said, dismissing speculation that defense cutbacks might severely curtail the demand for Sikorsky's bread-and-butter, the Black Hawk.

Borgman believes Sikorsky is well positioned for the future with continuing funding for Navy Seahawks (the new CH-60 and SH-60R), while the Army is defining an upgrade and modernization program for its UH-60Ls, which could result in remanufacture of hundreds of airframes.

The Black Hawk line can be revitalized by switching the more powerful engines, gearbox and dynamics of the S-92 back into the Hawks. "The Black Hawk has at least another 15 years in it," he told Show News.

Meanwhile, demand for the S-92 is expected to ramp up rapidly, bringing benefits to Jingdezhen Helicopter Group/CATIC of the People's Republic of China (tail section), Aerospace Industrial Development Corporation (AIDC) in Taiwan (entire cockpit), and Mitsubishi Heavy Industries in Japan (fuselage).

Borgman believes the S-92 will do well in Asia, where it will be a direct replacement for elderly S-61s (such as those in Malaysia), for some S-76s, and even Black Hawks. "There is some business here for sure," he said.

The S-92 just won its first two customers with Canadian offshore oil operator Cougar Helicopters, and Helijet Airways of Vancouver, and is strongly contesting competitions for military use in Canada, the Scandinavian countries, and Portugal. Borgman believes it could have won the $93.4 million deal signed in mid-1999 by the Hong Kong Government Flying Service with Eurocopter for three AS 332 L2 Super Puma and five EC 155 B helicopters. "It's too bad the S-92 wasn't ready to offer; we could have made a big difference," he said.

Hawk business is also there to be won. Singapore has a requirement that could be met by the new, navalized CH-60 Utility Hawk, Taiwan is currently taking delivery of new Hawks and is seen as having an additional requirement, and South Korea is due to issue an RFP in March for an armed Black Hawk. "That would be similar to the Battle Hawk we proposed in Australia, but upgraded," said Borgman.

Elsewhere, Colombia is now in line to receive 30 new Black Hawks under a special presidential budget appropriation for drug eradication, he added.

Sikorsky has also been told it is the "most favored option" for an Austrian requirement, which is more than can be said for that country's new government.

"We're waiting to see what happens there," Borgman noted.

By John Morris

Sikorsky is responsible for a fleet of nearly 500 helicopters in Asia comprising 300 Hawk series with Asian customers (including those built under license in Japan and South Korea): 52 Black Hawk and Seahawks flown by Australia; 94 S-76 helicopters in the region plus 21 more in Australia and one in New Zealand; and four S-76s with East Asia Airlines linking Hong Kong and Macau with scheduled services.

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